Half of the over 55s are planning to stay in semi-retirement for a longer period of time than the previous generation because they cannot afford to stop working completely, according to Heartwood Wealth Management.

Research conducted by the company has found that the average length of time people in the over 55s category are intending to stay in semi-retirement has risen to six and a half years, which is four years longer than the previous generation and six months longer than last year. Furthermore 24 per cent of those currently in semi-retirement are planning to remain so indefinitely and five per cent believe it will be at least ten years before they leave their workplace for good.

"Since we conducted this research last year," explained Simon Lough, chief executive of Heartwood, "baby boomers are staying in semi-retirement for even longer as many simply can't afford to stop working. Falling house prices, shrinking pension pots and the need to support financially dependent children have created a perfect storm for retirement plans."

As well as the 994,000 people who reported that they are staying in semi-retirement for financial reasons, a third (32%) of respondents blamed it on a fall in the value of their assets. A quarter (23%) reported that it is because their children still need to be supported financially.

Lough continued: "Market conditions should not hide the fact that people need to start saving more at the start of their working lives and treat retirement planning as a 40 year engagement." He adds that recent economic events have proven the importance of de-risking pension portfolios well before retirement age.

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